The dollar rallied very briefly following the much better November employment report, though despite increased fear of December Fed tapering, the unit quickly turned south. Treasury yields blipped higher, though with the market there positioned for a good jobs report, yields quickly tumbled lower again. Equities, for the first time in recent memory actually reacted positively to the better economic news, taper notwithstanding. EUR-USD dipped initially under 1.3620 from over 1.3650, before ramping up to 1.3697 highs. USD-JPY bucked the trend, and rallied to just shy of 103.00 from lows under 102.20, on improved equity market performance.

[EUR, USD]EUR-USD consolidated Thursday's gains into U.S. jobs data, within a few pips of yesterday's New York closing level of 1.3663, having posted a narrow 1.3650-1.3675 range overnight. EUR-USD dipped to 1.3620 from over 1.3650 after the jobs report, though quickly turned higher. The pairing failed to take out the 1.3700 level initially though, peaking at 1.3696 before heading back toward 1.3680. There was talk of smallish barrier option defense at the figure, while intra day longs were persistent sellers into the level. Stops are noted just over the figure, while more sellers are reportedly at 1.3720. The euro later printed 1.3700 though could manage no higher.

[USD, JPY]USD-JPY ramped up to 102.75 from 102.35 in the aftermath of the jobs report, as equities surged, yields moved higher, and the dollar overall lurched up. As yields came off though, the pairing briefly dipped toward 102.25, though with risk appetite remaining positive on Wall Street, it made its way higher through the remainder of the session, peaking near 102.95.

[GBP, USD]After a steady overnight session, cable dipped to under 1.6300 from near 1.6340 after the U.S. jobs report. From there though, as sentiment quickly shifted, the pair ramped up over 1.6390 in step with EUR-USD's run higher. Sellers were again apparent into 1.6400 however, and later trade saw cable slip back toward 1.6320. Sterling should remain in dip-buying mode, as U.K. fundamentals remain positive, and as U.K. inflation expectations appear to be on the rise, according to a BoE survey.

[USD, CHF]The CHF was well bid this week, making a one-month peak versus the USD and a two-month high against the EUR, and we expect more of the same. The rekindled U.S. Fed tapering view has proven supportive for the safe haven Swiss currency, and the CHF managed further gains after the stronger U.S. employment report on Friday. USD-CHF initially rallied over 0.8960, though subsequently fell back under 0.8925. EUR-CHF fell toward 1.2220.

[USD, CAD]USD-CAD shot up to 1.0708 from near 1.0640 after the mix of employment data, where jobs reports on both sides of the border came in better than expected. Once again, offers over 1.0700 stopped the rally dead in its tracks, and again kept sizable stops from 1.0720 out of harm's way. The pairing later retraced to lows near 1.0625, perhaps as the better U.S. data perked up optimism for Canadian growth as well.